Burts Bees - Marketing Essay Example
Does Burt’s Bees’ pricing strategy truly differentiate it form the competition? - Burts Bees introduction?? (Armstrong & Kolter, 2013) Burt’s Bees’ pricing strategy does differentiate themselves from the competition. With them using 99% majority of natural resources, that sets them away from the competition already. (Armstrong & Kolter, 2013) But with the high pricing marketing strategy they propose, it creates a higher level of quality into the consumer’s eyes. Having both of these attributes to there products, it is differentiated from the competition. 2. Has Burt’s Bees executed value-based pricing, cost-based pricing, or competition-based pricing?
Explain (Armstrong & Kolter, 2013) Burt’s has executed the value-based pricing the most. With Burt’s highest selling product, the lip balm. There product goes for $2. 99 a tube, where the leading market chapstick can go for a about a third of the price. (Armstrong & Kolter, 2013) With this being said Burt’s entire product line goes for a higher price than the standard market. They are trying to create a value to their product with a higher price. 3. How has Burt’s Bees implemented product-mix pricing strategies? (Armstrong & Kolter, 2013) Burt’s has used product-line pricing strategy.
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They have set a higher standard with a higher price to all their products. Creating a higher valued product with the all natural resources they use. 4. Could Burt’s Bees have been successful as a natural product marketer had it employed at a low-price strategy? (Armstrong & Kolter, 2013) I believe that Burt’s could have set themselves as a lower priced business but I don’t they would have profit margins like they do today. Even though they are using the natural resources they could have set the price lower. It just wouldn’t have that value standard it has now with the higher price. . Is Burt’s Bees pricing strategy sustainable? (Armstrong & Kolter, 2013) Burt’s Bees pricing strategy is very sustainable in the market. Even with tough times, Clorox that bought Burt’s says it’s the fastest growing company in the business unit. (Armstrong & Kolter, 2013) People like a good quality product and when your comparing a 2 dollar difference between and standard and good quality product, its hard not to buy Burt’s Bees lip balm. Reference: Armstrong, G. , & Kolter, P. (2013) Marketing: An Introduction (11th ed. ) Prentice Hall